Mission Company has three employees: $\begin{array}{lcc} &\text { Gross Pay through July}&\text { Gross Pay for August }\\ \text { Smith } & \$ 3,200 & \$ 1,000 \\ \text { Cain } & 25,800 & 3,500 \\ \text { Clark } & 94,600 & 13,100 \end{array}$ $\text { The company is subject to the following taxes: }$ $\begin{array} { l c l } \text { Tax } & \text { Rate } & \text { Applied To } \\ \text { FICA-Social Security } & 6 . 2 0 \% & \text { First } \$ 106,800 \\ \text { FICA-Medicare } & 1.45 & \text { All grosspay } \\ \text { FUTA } & . 8 0& \text { First } \$ 7,000 \\ \text { SUTA } & 5.40 & \text { First } \$ 7,000 \end{array}$ What is Mission Company's amount for payroll taxes for Smith?

A) $ 62.00 B) $138.50 C) $443.20 D) $581.70 E) $76.50 A) $ 62.00 B) $138.50 C) $443.20 D) $581.70 E) $76.50

A) Is an estimated liability B) Is a contingent liability C) Is a current liability for retailers D) Is a business expense E) Is a long-term liability A) Is an estimated liability B) Is a contingent liability C) Is a current liability for retailers D) Is a business expense E) Is a long-term liability

Exam 9: Reporting and Analyzing Current Liabilities

The current FUTA tax rate is 0.8% and the SUTA tax rate is 5.4%.Both taxes are applied to the first $7,000 of an employee's pay.Assume that an employee earned $8,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

(Multiple Choice)

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Question 61

A company's income before interest expense and income taxes in 2010 was $225,000 and $200,000 in 2011.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

(Essay)

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Question 62

The payroll records of a company provided the following data for the weekly pay period ended December 7: The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Prepare the journal entries to (a)accrue the payroll and (b)record payroll taxes expense.

(Essay)

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Question 63

Wal-Mart had income before interest expense and income taxes of $12,581 million and interest expense of $1,063 million.Sears had income before interest expense and income taxes of $3,596 million and interest expense of $1,143 million.Calculate the times interest earned ratio for each company and comment on the results.

(Essay)

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Question 64

A company has 90 employees and a weekly payroll of $117,000.The FICA-social security tax is 6.2% and the FICA-Medicare tax is 1.45%.The total withholding for federal income tax is $16,500 for the current week.Calculate the amount of FICA taxes owed (assuming no employee's salary is over the FICA limit)and prepare the journal entry to accrue this week's salaries expense and withholdings.

(Essay)

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Question 65

Mission Company has three employees: Gross Pay through July Gross Pay for August Smith \ 3,200 \ 1,000 Cain 25,800 3,500 Clark 94,600 13,100 $\text { The company is subject to the following taxes: }$ Tax Rate Applied To FICA-Social Security 6.20\% First \ 106,800 FICA-Medicare 1.45 All grosspay FUTA .80 First \ 7,000 SUTA 5.40 First \ 7,000 What is Mission Company's amount for payroll taxes for Smith?

(Multiple Choice)

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Question 66

A company performed warranty repair work for a customer that cost $1,000.The journal entry to record the work should be a debit of $1,000 to Warranty Expense and a credit of $1,000 to Estimated Warranty Liability.

(True/False)

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Question 67

What are known current liabilities? Provide at least two examples of known current liabilities.

(Essay)

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Question 68

If Jefferson Company paid a bonus equal to 6.5% of net income after bonuses and the total bonus distributed was $560,000,how much was net income for the year?

(Short Answer)

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Question 69

The main purpose of the wage bracket withholding table is to:

(Multiple Choice)

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Question 70

When companies pay the government collected sales tax,sales taxes payable is credited and cash is debited.

(True/False)

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Question 71

The difference between the amount borrowed and the amount repaid is referred to as _______________.

(Short Answer)

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Question 72

Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be

(Multiple Choice)

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Question 73

A company sells leaf blowers for $170 each.Each unit has a 3 year warranty that covers replacement of defective parts.It is estimated that 4% of all leaf blowers sold will be returned under the warranty at an average cost of $30 each.During October,the company sold 400,000 leaf blowers.800 leaf blowers were serviced under the warranty during October at a total cost of $25,000.The balance in the Estimated Warranty Liability account on October 1 was $12,500.What is the company's warranty expense for the month of October?

(Multiple Choice)

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Question 74

An employee earnings report:

(Multiple Choice)

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Question 75

Tree Frog Company is organized as a LLC and does not pay income taxes.The company has fixed interest expense of $5,750,Sales of $253,000 and variable expenses of $189,750.What is the company's times interest earned ratio?

(Multiple Choice)

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Question 76

The deferred income tax liability:

(Multiple Choice)

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Question 77

Sales taxes payable:

(Multiple Choice)

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Question 78

____________________________ are banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes.

(Short Answer)

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Question 79

A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000.Its times interest earned ratio is equal to .4.

(True/False)

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Question 80

Showing 61 - 80 of 195

The current FUTA tax rate is 0.8% and the SUTA tax rate is 5.4%.Both taxes are applied to the first $7,000 of an employee's pay.Assume that an employee earned $8,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

A company's income before interest expense and income taxes in 2010 was $225,000 and $200,000 in 2011.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

A company performed warranty repair work for a customer that cost $1,000.The journal entry to record the work should be a debit of $1,000 to Warranty Expense and a credit of $1,000 to Estimated Warranty Liability.

What are known current liabilities? Provide at least two examples of known current liabilities.

If Jefferson Company paid a bonus equal to 6.5% of net income after bonuses and the total bonus distributed was $560,000,how much was net income for the year?

The main purpose of the wage bracket withholding table is to:

When companies pay the government collected sales tax,sales taxes payable is credited and cash is debited.

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Maryland Company offers a bonus plan to its employees equal to 3% of net income.Maryland's net income is expected to be $960,000.The amount of the employee bonus expense is estimated to be

An employee earnings report:

Tree Frog Company is organized as a LLC and does not pay income taxes.The company has fixed interest expense of $5,750,Sales of $253,000 and variable expenses of $189,750.What is the company's times interest earned ratio?

The deferred income tax liability:

Sales taxes payable:

____________________________ are banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes.

A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000.Its times interest earned ratio is equal to .4.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

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